Faculty of Economics

Developed money market allows to its participants better chances for short-term investment, helps to development of competition in the market but it also serves as a mechanism for the implementation of monetary policy. Most importantly, a developed money market helps less expensive borrowing of money to its issuers because it increases the liquidity of the primary market for these securities. In this paper, we focused on the characteristics of the secondary market of treasury bills. We have tried, using experiences from developed markets, to offer solutions for developing secondary market of treasury bills in the Republika Srpska. In relation to that, we have analyzed trade with T-bills at the Banja Luka Stock Exchange. We have also presented that market makers can significantly contribute to the development of the secondary market of treasury bills.

The aim of this paper is to present the effects of the listing
sport clubs on the stock exchange in order to facilitate funding
for sports clubs. Owners and managers of clubs that have
the ambition to obtain money for the club or to significantly
increase its value, should consider the opportunities
offered by the initial public offering of shares on the Stock
Exchange. With that move the club becomes more valuable,
broader ownership structure and becomes public company.
The advantage is that the issuing of shares have no maturity
date and interest rate because investors who buy shares in
a public offering expected return based on dividends or
profits through price increases on the Stock Exchange. Another
important factor is that funding in this way the club
does not depend only on one lender. In addition, it should
bear in mind that in this way improves the image of the club
in the event of future takeover by other companies or clubs.
Experience from capital markets show that after crossing the
open joint stock company sports club organizational discipline.
There is separation of ownership and control functions,
except for internal, mandatory external audit and the business
of the club makes it more transparent. Managers who
lead the club are motivated with management contracts to
manage the club as a company and in the best interest of
all shareholders. In doing so, all owners in proportion to their
share capital, can participate in making decisions.
The process of exiting to the Stock Exchange gets attention
of public as it has a synergistic effect - promoting sports club
through regular disclosure of all information relevant to the
business of the club because of the interest in the business
of companies still higher than in private companies.

One of the possible ways to obtain
funding from external sources is issuing bonds. It is a
classic credit relationship between the issuer and the
purchaser of bonds. When comparnig bonds turnover
with total turnover on the Banja Luka Stock Exchange,
it can be seen that the bonds became increasingly
important market material. Furthermore, compared to
the risk of investing in shares, bonds are less risky.
Accordingly, it is expected to have further interest in
this kind of investment and fundraising. In addition,
banks as issuers of bonds can provide long-term
sources of funds to finance their long-term projects.
Issuance of bonds in the future will provide an
additional stimulus to the growth of the domestic
capital market.

Municipal bonds are issued by cities, municipalities or other local communities in order to quickly raise funds to cover current budget deficits, finish infrastructure projects for production and distribution of thermal energy, improve water supply, road construction, sports and recreation centers, schools or to fund such projects on more favorable terms than to borrow from banks. In this manner, necessary conditions are created for faster development of the real sector. The aim of this study is to evaluate the importance, possibilities and effects of the bond issue in the Republika Srpska aimed at securing funding for and development of local communities.
Good examples that local government bonds enhance community development include capital markets in countries that have made the transition from the socialist system design, similar to the market of the Republika Srpska, like the Polish, Slovakian, Hungarian and Croatian markets.
Issues of municipal bonds in the Republika Srpska succeeded mostly due to the workings of Investment-Development Bank of RS. However, it certainly shows that further high-quality municipal bonds could attract more interest from various institutional investors, especially mutual funds and insurance companies, and investors who are more risk-averse will be able to familiarize and inform themselves with the functioning of capital markets. In this manner, our capital market would confirm its essential role and thus become a generator of overall economic development of the Republika Srpska because it would enable more efficient collection and allocation of capital resources.

In order to quickly raise funds to road construction, improve water supply, finish infrastructure projects for production and distribution of thermal energy, sports and recreation centers or to fund such projects on more favorable terms than to borrow from banks cities, municipalities or other local communities are issued municipal bonds. Good examples that local government bonds enhance community development include capital markets in countries that have made the transition from the socialist system design, similar to the market of the Republika Srpska, like the Polish, Slovakian, Hungarian and Croatian markets.
Issues of municipal bonds in the Republika Srpska succeeded mostly due to the workings of Investment-Development Bank of RS. However, it certainly shows that further high-quality municipal bonds could attract more interest from various institutional investors, especially mutual funds and insurance companies. In this manner, our capital market would confirm its essential role and thus become a generator of overall economic development of the Republika Srpska because it would enable more efficient collection and allocation of capital resources.

Municipal bonds are issued by cities, municipalities or other local communities in order to quickly raise funds to cover current budget deficits, finish infrastructure projects for production and distribution of thermal energy, improve water supply, road construction, sports and recreation centers, schools or to fund such projects on more favorable terms than to borrow from banks. In this manner, necessary conditions are created for faster development of the real sector. The aim of this study is to evaluate the importance, possibilities and effects of the bond issue in the Republika Srpska aimed at securing funding for and development of local communities.
Good examples that local government bonds enhance community development include capital markets in countries that have made the transition from the socialist system design, similar to the market of the Republika Srpska, like the Polish, Slovakian, Hungarian and Croatian markets.
Issues of municipal bonds in the Republika Srpska succeeded mostly due to the workings of Investment-Development Bank of RS. However, it certainly shows that further high-quality municipal bonds could attract more interest from various institutional investors, especially mutual funds and insurance companies, and investors who are more risk-averse will be able to familiarize and inform themselves with the functioning of capital markets. In this manner, our capital market would confirm its essential role and thus become a generator of overall economic development of the Republika Srpska because it would enable more efficient collection and allocation of capital resources.

One of the most important processes in the development of regulation and supervision of the financial sector started at the end of the last century was the transition from the traditional sector supervision in an integrated and consolidated approach to supervision. This model has accepted a large number of EU countries, and the world. The financial crisis, of which the world market have not yet been recovered, undermined confidence in this model and offered new arguments for and against establishing a single for supervisors in the financial sector. Winning the lessons of the financial crisis and the perceived weaknesses of the existing supervisory framework initiated the review, reform and build a new architecture of the supervisory function of financial markets. Since the financial supervision is an important element of maintaining financial stability, and to local literature does not pay sufficient attention to the issue of supervision and regulation, this paper presents the current status of supervision in the Republic of Serbian focusing on the opportunities and advantages and disadvantages of merging the agency for monitoring and control of the entity.
Keywords:
financial control, consolidated supervision, a single supervisor, The financial markets, securities, banking, insurance

The possibility of utilization of funds provided by the European Union depends on depends on the political will to meet the requirements set for the connection European Union but also from the development of technical capacity needed to use these funds. Instrument for Pre-Accession Assistance (IPA) offers great opportunities for institutional and socio-economic development of society in the areas where our country is lagging behind in the European integration process. Unfortunately, the results in the withdrawal of the use of IPA funds confirm the claim that the institutions at all levels in BiH should provide greater support and angažovanist in political and technical terms. Similar problems had other zemljame korisnicame IPA funds, and this is most evident on the relation of approved and used funds IPA defined multi-annual indicative financial framework (MIFF) for 2007-2013. It shows an overview of the current utilization of the IPA funds in the countries of the region and provides an overview of the way to use the funds for those IPA components on which BiH is still not right because there is no candidate status.

Bitcoin (bitcoin) the crypto-virtual currency, which is not officially recognized by any country, and behind which there is no institution or individual. This is a program that happens on the Internet and keeps it a multitude of computers that handle transactions which bitcoin moving among users. At the same time, bitcoin is possible, the physical, but more and legal entities, pay orders over the internet. For now, the movement of the value of bitcoin is reminiscent of the movement of gold prices - increases the greater uncertainty in financial markets. Therefore acts as a "safe haven" in the crisis. It was conceived as a universal currency for the calculation of the value of the payment, but its application has been historical evidence. If that is the total number of bitcoin 21 million, this means that it will not occur "authority" that would "printed money" waiting for the user to believe that more money generated have the same value. In short, bitcoin is virtual money, with two of the three functions of real money. Most importantly, the phenomenon has proved to be "non-governmental" currency without the control of the central bank great serves and to express the values ​​and gladly accepted as a medium of exchange.

One of the ways to measure the risk of the other side and to assessed and quantified that risk is insight into the financial statements of the counterpart)and analysis of those statements. Such credit risk assessment is then compared with the level of credit risk that we want to accept. This comparison allows us to assess the potential risk of a company that will  provide to us an answer to the question of whether and to what extent certain bankruptcy would happen in such companies.The model for the assessment of counterparty risk in the Republic of Srpska can be used. Different models use different assumptions. Assessment of how the model is good at predicting is done on the basis of the outcome of the phenomenon that is predicted and its movement into the future. Often the discussions taking place about which the assumptions used in the models and on the basis of these discussions models are rejected or accepted. Previous experience of

companies in the Republic of Srpska indicate that the models can be used, and their testing is possible, although to a limited extent. The biggest step forward in the evaluation of counterparty risk in our region have made banks. In the future, it is expected that the companies and government institutions would use this model for risk assesment

Current theory and practice of assessment of a company is characterized by the existence of different methods of assessment. One of many reasons is fact the requirements and conditions for assessing the company have changed considerably in recent years. At the same time, progress in financial management led to the development of new concepts and methods of assessment. One of the most commonly used is the discounted cash flow.
However, there is a high possibility of making mistakes in assessing future results of the company in planning cash flows and when taking certain components of WACC - beta, risk-free rate, premiums. These limits are even greater on small stock exchanges where are many securities which are rarely or never traded. Therefore, we have to rely on the sensitivity analysis. This paper focuses on the evaluation, selection and values for the calculation the rate of WACC.

The term „portfolio analysis”, which was introduced in the economic theory by Harry Markowitz, is not a new term in scientific literature. However, in the papers of local and foreign authors, analysis and criticism are mainly based on the examples of developed capital markets. There are very few cases of application of the portfolio analysis on domestic capital market. The focus of this paper is on implementation of diversification of the shares on the Banja Luka Stock Exchange. Using Markowitz’s portfolio selection, we will prove that diversification, including all limitations, is possible and applicable onto the domestic capital market.

Financing of investment projects by issuing bonds in the Republika Srpska dramatically gained in importance with the emergence and development of entity, corporate and municipal bonds since 2007. Republika Srpska issued bonds with the purpose of settling the old foreign currency savings, war damage and for the servicing of the budget. In this paper, in order to emphasize the possibility of financing various projects, we were focused on the municipal and corporate bonds in the domestic capital market. We have also demonstrated the proceedings to assess the cost-effectiveness of financing investment projects, which are completely financed by issuing bonds in order to close the idea of the opportunities offered by the bonds to professional and wider public. We have based evaluation of investment projects on a dynamic method of net present value and internal rate of return method.
According to the method of payment of interest on the capital market of the Republika Srpska there are two types of bonds: annuity amortized bonds and coupon bonds. Accordingly, we discussed both models for the evaluation of the cost-effectiveness of the project which would be financed by issuing bonds.
Keywords: financing projects by issuing bonds, municipal bonds, corporate bonds, internal rate of return

In this paper we will analyze several different models for assessing the probability of the risk of bankruptcy. We will test several, the most famous, relevant models on the balances of joint stock companies on the Banja Luka Stock Exchange in the period from 2010 until 2015. Analyzing the models, we will analyze their achievements and limitations and we will test how these models are applicable in the Republika Srpska. After testing all these models, we will use them to calculate the probability of bankruptcy of joint stock companies listed on the Banja Luka Stock Exchange. In this regard, based on the model that we analyzed, we will create our model that predicts the probability of bankruptcy for joint stock companies on emerging markets.

АBSTRACT: Proper valuation of bonds is important for issuers of bonds and investors in these securities. The aim of this paper is to present the characteristics and types of bonds, the terminology associated with them and the process of evaluation of different types of bonds on the capital market of the Republika Srpska.
Bonds issued by the Republika Srpska are for the purpose of settling old foreign currency savings, war damage and for budget issues. According to the method of payment of interest on the capital market of the Republika Srpska there are two types of bonds: the bonds amortized annuity and coupon bonds. Accordingly, we have developed a model that shows the simplest effective yield to maturity annually. Based on this model, we facilitate the bond evaluation to investors or the issuers on the basis of duration of bonds.
KEYWORDS: bonds, valuation of bonds, internal value, the effective yield to maturity, duration

The term "portfolio analysis", introduced in the economic theory by Harry Markowitz, is not a new term in scientific literature. However, in the papers of local and foreign authors, analysis and criticism are mainly based on the examples of developed capital markets. There are very few cases of application of the portfolio analysis in the domestic capital market. The focus of this paper is on implementation of diversification of the bonds on the Banja Luka Stock Exchange. Using Markowitz's portfolio selection, we will prove that diversification, including all limitations, is possible and applicable onto the domestic bonds in the capital market.

Cryptocurrencies are the digital instrument of exchange. It is possible to pay various, legal and illegal, orders via the Internet with the cryptocurrencies. Accordingly, сryptocurrencies are the digital equivalent of cash.
The main characteristic of the cryptocurrencies is absence of a central institution that emits it or has to manage it. For example, bitcoin is a cryptographic-virtual currency, which is not officially recognized by any country, and  there is no institution or individual behind it.
To understand the functioning cryptocurrencies requires certain computer knowledge but it is relatively simple to use anz of them. Currently, the movement values of cryptocurrencies, at first line of bitcoin, reminiscent of the movement of gold prices - it is growing while there is greater uncertainty in financial markets. Therefore cryptocurrencies  act as a "safe haven" in the crisis. The phenomenon of cryptocurrencies proved that "non-governmental" currency without the control of the central bank can be used to express the values and as a instrument of exchange. However, despite the wide exemplary use, there are numerous risks of cryptocurrencies.
Keywords: bitcoin, investing, quasi-money, cryptocurrencies